Hsbc Global Res Downgrades lululemon athletica (NASDAQ:LULU) to Hold

Key Points

• HSBC Global Research downgraded lululemon athletica from a "strong-buy" rating to a "hold" rating, indicating a significant shift in analyst sentiment towards the stock.
• Other analysts have also reduced their price targets for lululemon, with Morgan Stanley cutting their target from $280.00 to $223.00 and Citigroup reducing from $220.00 to $190.00.
• Despite recent downgrades, lululemon posted earnings of $3.10 per share, beating estimates, with a revenue of $2.53 billion, though still slightly short of projections.

lululemon athletica (NASDAQ:LULU - Get Free Report) was downgraded by analysts at Hsbc Global Res from a "strong-buy" rating to a "hold" rating in a research note issued on Thursday,Zacks.com reports.

Other equities analysts have also recently issued reports about the company. Oppenheimer reiterated a "market perform" rating and issued a $500.00 price target on shares of lululemon athletica in a research report on Friday, September 5th. Morgan Stanley reduced their price target on lululemon athletica from $280.00 to $223.00 and set an "equal weight" rating for the company in a research report on Tuesday, August 26th. Truist Financial cut lululemon athletica from a "buy" rating to a "hold" rating and set a $170.00 price target for the company. in a research report on Friday, September 5th. Citigroup reduced their price target on lululemon athletica from $220.00 to $190.00 and set a "neutral" rating for the company in a research report on Friday, September 5th. Finally, William Blair cut lululemon athletica from an "outperform" rating to a "market perform" rating in a research report on Friday, September 5th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, twenty-three have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $243.17.

lululemon athletica Stock Up 1.1%

LULU opened at $165.78 on Thursday. The company has a market capitalization of $19.87 billion, a price-to-earnings ratio of 11.27, a PEG ratio of 6.76 and a beta of 1.12. The firm has a 50-day moving average price of $206.37 and a 200-day moving average price of $260.59. lululemon athletica has a twelve month low of $162.80 and a twelve month high of $423.32.

lululemon athletica (NASDAQ:LULU - Get Free Report) last posted its earnings results on Thursday, September 4th. The apparel retailer reported $3.10 earnings per share for the quarter, topping the consensus estimate of $2.86 by $0.24. The firm had revenue of $2.53 billion during the quarter, compared to the consensus estimate of $2.55 billion. lululemon athletica had a net margin of 16.38% and a return on equity of 42.05%. The company's revenue was up 6.5% on a year-over-year basis. During the same quarter last year, the company earned $3.15 earnings per share. lululemon athletica has set its FY 2025 guidance at 12.770-12.970 EPS. Q3 2025 guidance at 2.180-2.230 EPS. On average, sell-side analysts expect that lululemon athletica will post 14.36 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Calvin Mcdonald sold 27,049 shares of the business's stock in a transaction dated Friday, June 27th. The stock was sold at an average price of $235.69, for a total transaction of $6,375,178.81. Following the completion of the transaction, the chief executive officer directly owned 110,564 shares in the company, valued at $26,058,829.16. The trade was a 19.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.54% of the stock is currently owned by insiders.

Hedge Funds Weigh In On lululemon athletica

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. N.E.W. Advisory Services LLC bought a new stake in lululemon athletica during the first quarter worth about $25,000. Cornerstone Planning Group LLC boosted its holdings in shares of lululemon athletica by 506.3% in the 1st quarter. Cornerstone Planning Group LLC now owns 97 shares of the apparel retailer's stock worth $26,000 after purchasing an additional 81 shares in the last quarter. Flaharty Asset Management LLC purchased a new position in shares of lululemon athletica in the 1st quarter worth about $29,000. Blue Trust Inc. boosted its holdings in shares of lululemon athletica by 96.8% in the 2nd quarter. Blue Trust Inc. now owns 124 shares of the apparel retailer's stock worth $29,000 after purchasing an additional 61 shares in the last quarter. Finally, Trust Co. of Toledo NA OH purchased a new position in shares of lululemon athletica in the 2nd quarter worth about $30,000. 85.20% of the stock is currently owned by hedge funds and other institutional investors.

About lululemon athletica

Lululemon Athletica Inc, together with its subsidiaries, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. It offers pants, shorts, tops, and jackets for healthy lifestyle, such as yoga, running, training, and other activities. It also provides fitness-inspired accessories.

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